Software Acquisition Agreement for Malaysia

Software Acquisition Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes the terms and conditions for the acquisition of software products or licenses. This agreement covers crucial aspects including licensing terms, implementation requirements, payment structures, intellectual property rights, warranties, and ongoing support and maintenance obligations. It ensures compliance with Malaysian legislation including the Contracts Act 1950, Copyright Act 1987, and Personal Data Protection Act 2010, while providing clear guidelines for software delivery, acceptance testing, and dispute resolution mechanisms.

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What is a Software Acquisition Agreement?

The Software Acquisition Agreement serves as a crucial legal framework for organizations in Malaysia seeking to purchase or license software solutions for their business operations. This document is essential when acquiring commercial off-the-shelf software, custom-developed solutions, or enterprise-wide systems. It addresses key aspects such as license scope, implementation timelines, acceptance criteria, warranty terms, and support obligations, while ensuring compliance with Malaysian legal requirements including the Contracts Act 1950, Electronic Commerce Act 2006, and Personal Data Protection Act 2010. The agreement is particularly important in today's digital economy where software acquisitions represent significant investments and require clear documentation of rights, obligations, and protections for all parties involved.

What sections should be included in a Software Acquisition Agreement?

1. Parties: Identification of the vendor/licensor and purchaser/licensee with full legal names and registration details

2. Background: Context of the agreement, including brief description of the software and purpose of acquisition

3. Definitions: Detailed definitions of technical terms, software components, and other key terms used throughout the agreement

4. Scope of License/Purchase: Details of what is being acquired, including specific modules, number of users, and deployment scope

5. Delivery and Implementation: Timelines and procedures for software delivery, installation, and implementation

6. Payment Terms: Price, payment schedule, and payment methods

7. Acceptance Testing: Procedures for testing and accepting the software, including acceptance criteria

8. Warranties and Representations: Vendor warranties regarding software functionality, performance, and compliance with specifications

9. Intellectual Property Rights: Ownership of IP, licensing terms, and restrictions on use

10. Confidentiality: Protection of confidential information exchanged during the transaction

11. Support and Maintenance: Terms for ongoing technical support and software maintenance

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Limitation of Liability: Caps on liability and exclusions of certain types of damages

14. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

What sections are optional to include in a Software Acquisition Agreement?

1. Software Customization: Include when the software requires customization to meet specific requirements

2. Data Protection and Privacy: Required if the software processes personal data or when compliance with PDPA is necessary

3. Cloud Services: Include for cloud-based software solutions, covering hosting, data storage, and service levels

4. Integration Services: When the software needs to be integrated with existing systems

5. Training: Include when vendor will provide training services

6. Disaster Recovery: Important for business-critical software applications

7. Source Code Escrow: Include when source code access might be necessary for business continuity

8. Export Controls: Required for international software vendors or cross-border usage

9. Change Control: Include for projects requiring significant customization or phased implementation

What schedules should be included in a Software Acquisition Agreement?

1. Software Specification: Detailed technical specifications of the software

2. Price Schedule: Detailed breakdown of costs including licenses, implementation, and maintenance

3. Implementation Plan: Detailed timeline and milestones for software implementation

4. Service Level Agreement: Performance metrics, response times, and service quality standards

5. Acceptance Test Criteria: Detailed testing procedures and acceptance criteria

6. Support and Maintenance Services: Detailed description of support levels and maintenance services

7. Licensed Users: List of authorized users or user categories and access levels

8. Technical Requirements: Hardware and system requirements for software operation

9. Data Processing Agreement: Details of data processing activities and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Information Technology

Banking and Finance

Healthcare

Manufacturing

Retail

Education

Government and Public Sector

Telecommunications

E-commerce

Professional Services

Insurance

Logistics and Transportation

Real Estate

Energy and Utilities

Relevant Teams

Legal

Information Technology

Procurement

Finance

Risk and Compliance

Information Security

Operations

Project Management

Technical Architecture

Digital Transformation

Vendor Management

Relevant Roles

Chief Information Officer

Chief Technology Officer

IT Director

Procurement Manager

Legal Counsel

Contract Manager

IT Project Manager

Software Development Manager

Information Security Manager

Risk Manager

Compliance Officer

Technical Architect

Enterprise Architect

Finance Director

Operations Manager

Digital Transformation Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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